US dollar index retreats from 5-month maximum

10:10 22.05.2018

On Tuesday, the evergreen buck traded below the five-month maximum, taking a breather after the soar underpinned by soaring yields on US government bonds as well as easing tensions in US-China trade relations.

The US dollar index, traditionally used to gauge the dynamics of the major American currency versus a bunch of main competitors, showed 93.593, having retreated from the peak of five months - 94,058 recorded on Monday.

The retracement of the revenue on the US Treasury's ten-year bonds from seven-year maximums hit the previous week probably made traders record profits from the strengthening of the greenback, as some financial analysts pointed out.

For the last month, the evergreen buck was underpinned by the good economic statistics of the United States, as well as by the growth in the revenue of US government bonds.

The prospect of resolving a trade dispute between China and the United States also spurred the attractiveness of the greenback.

The revenue of ten-year treasury bonds has drifted away from Friday's peak for nearly seven years 3,128 percent, having dived to the level of 3,0523 percent.

Against the Japanese yen, the evergreen buck headed south by about 0.1% coming up with an outcome of 110.90 yen, having hit a four-month maximum of 111.395 yen on Monday.

In addition to this the common currency went down 0.1% being worth $1.1779, although it was higher than the minimum of $1.1717 - the lowest outcome since mid-November.

Besides this, the pressure on the common currency is applied by worries as for the political uncertainty in Italy.

Market participants are waiting for the publication of the minutes of the last meeting of the US major financial institution that will be uncovered on Wednesday and might shed light on the pace of policy tightening by the Fed.

On Thursday, the major US currency rebounded from its unexpected dive following dismal economic data that sparked fears about the strength of the American economy and also backed the Fed’s intention to leave rates on hold in the nearer future…

On Tuesday, the euro tacked on because market participants waited for reports on inflation and growth in the euro zone, while the Japanese yen went down after Japan’s major bank told it would be more flexible in its huge stimulus program…

On Tuesday, the evergreen buck dived because the common currency bounced off and the UK pound managed to ascend to the day’s maximums reacting to reports that British Prime Minister Theresa May is going to take control of Brexit talks…